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LVMH: Will the Tiffany takeover come later?

LVMH won’t take over Tiffany. They actually wanted to take over the jeweler for $ 16.2 billion. One refrains from that. The trade disputes between France and the US play a role in this. The French Foreign Ministry had asked to postpone the closing of the transaction to early January 2021. However, there is an agreed deadline to close the deal by the end of November. So the deal is off.

Independent Research analysts are not surprised. There has been speculation about a possible failure before. From their point of view, the decision is understandable. The pandemic is affecting Tiffany’s business. Sales fell by 37 percent in the first half of the year.

Tiffany wants to continue with the takeover. A lawsuit has been filed in a US court. From the perspective of the analysts, it is possible that the parties involved will agree on a takeover at a later point in time – under changed conditions. However, due to the pandemic, it is currently less important for LVMH to have a strong market position in the USA.

The analysts continue to recommend a hold for the shares of LVMH. The price target remains unchanged at EUR 410.00.

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